Use the Excel Format provided to fill out all numbers and calculate ratios for Intel and AMD. Go to the individual company's IR site and download the latest 10-K PDF annual report to find the required numbers. You can also use Value Line numbers from the Value Line Sheet attached under Course Material.
No Job Name 80 60 50 40 30 25 20 15 10 7.5 Percent shares traded 36 24 12 Target Price Range 2021 2022 2023 INTEL NDQ-INTC 52.93 13.2 14.412.0 0.71 2.3% TIMELINESS 1 Raised 3/2/18 SAFETY 1 Raised 4/10/09 TECHNICAL 2 Raised 6/22/18 BETA 1.05 (1.00 = Market) 2021-23 PROJECTIONS Ann’l Total Price Gain Return High 95 (+80%) 17% Low 80 (+50%) 13% Insider Decisions A S O N D J F M A to Buy 0 0 0 0 0 0 0 0 0 Options 6 0 6 6 1 11 15 1 5 to Sell 2 0 4 1 1 2 4 0 2 Institutional Decisions 3Q2017 4Q2017 1Q2018 to Buy 898 935 913 to Sell 891 840 1154 Hld’s(0000)348285632292003146631 High: 28.0 26.3 21.3 24.4 25.8 29.3 26.0 37.9 37.5 38.4 47.6 57.6 Low: 18.8 12.1 12.0 17.6 19.2 19.2 20.1 23.5 24.9 27.7 33.2 42.0 % TOT. RETURN 5/18 THIS VL ARITH.* STOCK INDEX 1 yr. 56.8 14.3 3 yr. 74.9 29.1 5 yr. 164.9 67.5 CAPITAL STRUCTURE as of 3/31/18 Total Debt $28,612 mill. Due in 5 Yrs $2,430 mill. LT Debt $24,770 mill. LT Interest $245.0 mill. (26% of Cap’l) Interest Coverage: 24.6x Leases, Uncapitalized Annual rentals $215.0 mill. Pens. Assets-12/17 $2287 mill. Oblig. $3842 mill. Pfd Stock None Common Stock 4,660,000,000 shs. MARKET CAP: $247 billion (Large Cap) CURRENT POSITION 2016 2017 3/31/18 ($MILL.) Cash Assets 17099 140002 16197 Receivables 4690 5607 4879 Inventory (FIFO) 5553 6983 7146 Other 8166 2908 3408 Current Assets 35508 29500 31630 Accts Payable 2475 2928 4415 Debt Due 4634 1776 3842 Other 13193 12717 11704 Current Liab. 20302 17421 19961 ANNUAL RATES Past Past Est’d ’15-’17 of change (per sh) 10 Yrs. 5 Yrs. to ’21-’23 Sales 7.0% 5.0% 7.0% ‘‘Cash Flow’’ 8.5% 5.5% 10.0% Earnings 9.5% 5.5% 12.5% Dividends 10.0% 6.0% 5.5% Book Value 8.0% 8.0% 7.5% Cal- Full endar Year QUARTERLY SALES ($ mill.) Mar.31 Jun.30 Sep.30 Dec.31 2015 12781 13195 14465 14914 55355 2016 13702 13533 15778 16374 59387 2017 14796 14763 16149 17053 62761 2018 16066 16900 17400 17834 68200 2019 16500 16800 17875 18425 69600 Cal- Full endar Year EARNINGS PER SHARE A Mar.31 Jun.30 Sep.30 Dec.31 2015 .40 .55 .64 .74 2.33 2016 .54 .59 .80 .79 2.72 2017 .66 .72 1.01 1.08 3.47 2018 .87 1.00 1.03 1.10 4.00 2019 .95 1.03 1.12 1.15 4.25 Cal- Full endar Year QUARTERLY DIVIDENDS PAID B ■ Mar.31 Jun.30 Sep.30 Dec.31 2014 .225 .225 .225 .225 .90 2015 .24 .24 .24 .24 .96 2016 .26 .26 .26 .26 1.04 2017 .26 .273 .273 .273 1.08 2018 .30 .30 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 4.07 4.65 5.47 6.56 6.14 6.59 6.76 6.36 7.92 10.80 10.79 10.61 11.77 11.72 1.24 1.59 1.94 2.20 1.68 1.98 1.74 1.65 2.92 3.62 3.51 3.30 4.02 4.07 .51 .86 1.16 1.40 .86 1.18 .92 .77 2.05 2.39 2.13 1.89 2.31 2.33 .08 .08 .16 .32 .41 .45 .55 .56 .63 .78 .87 .90 .90 .96 .72 .56 .61 .98 1.00 .86 .93 .82 .94 2.15 2.23 2.16 2.13 1.55 5.40 5.83 6.17 6.11 6.37 7.35 7.03 7.55 8.97 9.18 10.36 11.73 11.77 13.12 6570.0 6487.0 6253.0 5919.0 5766.0 5818.0 5562.0 5523.0 5511.0 5000.0 4944.0 4967.0 4748.0 4725.0 45.8 27.5 22.1 17.8 23.3 19.9 21.7 22.2 10.1 9.2 11.7 12.2 13.2 13.8 2.50 1.57 1.17 .95 1.26 1.06 1.31 1.48 .64 .58 .74 .69 .69 .69 .3% .3% .6% 1.3% 2.0% 1.9% 2.8% 3.3% 3.0% 3.5% 3.5% 3.9% 3.0% 3.0% 37586 35127 43623 53999 53341 52708 55870 55355 37.3% 29.8% 45.9% 42.4% 39.9% 36.2% 41.7% 40.5% 4360.0 4744.0 4398.0 5141.0 6357.0 6790.0 7380.0 7821.0 5292.0 4369.0 11692 12942 11005 9620.0 11704 11420 31.1% 23.4% 28.7% 27.2% 26.0% 23.7% 25.9% 19.6% 14.1% 12.4% 26.8% 24.0% 20.6% 18.3% 20.9% 20.6% 12053 13566 22284 13844 18460 18516 11711 24689 1886.0 2049.0 2077.0 7084.0 13136 13165 12107 20036 39088 41704 49430 45911 51203 58256 55865 61982 12.9% 10.0% 22.8% 24.5% 17.2% 13.6% 17.3% 14.1% 13.5% 10.5% 23.7% 28.2% 21.5% 16.5% 21.0% 18.4% 5.6% 3.0% 16.6% 19.2% 13.0% 8.8% 13.1% 11.1% 59% 71% 30% 32% 40% 47% 38% 40% 2016 2017 2018 2019 © VALUE LINE PUB. LLC 21-23 12.56 13.39 14.85 15.45 Sales per sh 18.65 4.10 5.02 5.50 5.95 ‘‘Cash Flow’’ per sh 7.80 2.72 3.47 4.00 4.25 Earnings per sh A 5.75 1.04 1.08 1.20 1.24 Div’ds Decl’d per sh B ■ 1.40 2.03 2.51 3.00 3.50 Cap’l Spending per sh 4.50 14.19 14.91 16.30 17.80 Book Value per sh 21.60 4730.0 4687.0 4600.0 4500.0 Common Shs Outst’g C 4400.0 12.3 10.9 Bold figures are Value Line estimates Avg Ann’l P/E Ratio 15.0 .65 .55 Relative P/E Ratio .85 3.1% 2.9% Avg Ann’l Div’d Yield 1.6% 59387 62761 68200 69600 Sales ($mill) 82000 35.9% 40.2% 41.0% 42.0% Operating Margin 45.0% 6266.0 6762.0 7000 7750 Depreciation ($mill) D 9000 13146 16756 18400 19125 Net Profit ($mill) 25300 24.0% 46.6% 14.0% 14.0% Income Tax Rate 14.0% 22.1% 26.7% 27.0% 27.5% Net Profit Margin 30.9% 15206 12079 13000 13750 Working Cap’l ($mill) 15000 20649 25037 24000 22500 Long-Term Debt ($mill) 20000 67108 69885 75000 80000 Shr. Equity ($mill) 95000 15.3% 18.0% 18.5% 18.5% Return on Total Cap’l 22.0% 19.6% 24.0% 24.5% 24.0% Return on Shr. Equity 26.5% 12.3% 16.7% 17.0% 17.0% Retained to Com Eq 20.0% 37% 30% 30% 29% All Div’ds to Net Prof 24% Company’s Financial Strength A++ Stock’s Price Stability 75 Price Growth Persistence 55 Earnings Predictability 80 (A) Dil. egs. Excl. nonrecurr. gains (losses): ’02, (5¢); ’03, (1¢); ’10, (4¢); ’16, (60¢). Next egs. report due late July. (B) Dividends historically paid in early March, June, September, and December. ■ Dividend reinvestment plan available. (C) In millions. (D) Excludes amortization of goodwill and other acquisition-related intangibles. BUSINESS: Intel is a leading manufacturer of integrated circuits. Markets served: primarily makers of personal computers; also com- munications, industrial automation, military, and other electronic equipment. Main products: microprocessors (notably, the Pentium series), microcontrollers, and memory chips. Also sells computer modules and boards, and network products. Foreign business: about 80% of ’17 sales. R&D: 20.9% of sales. ’17 dep. rate: 6.8%. Has 103,700 empl. Off./dir. own less than 1% of common shares; The Vanguard Group, 7.3%; BlackRock, 6.3%. (4/18 proxy). Chair.: Andy Bryant. Pres.: Venkata Renduchintala. Interim CEO: Robert Swan. Inc.: DE. Address: 2200 Mission College Blvd., Santa Clara, CA 95054. Tel.: 408-765-8080. Internet: www.intc.com. Intel continues to shine. On point, dur- ing the March period, share net dialed in at $0.87 on a non-GAAP basis (excludes nonrecurring items), a sharp advance over the previous year’s $0.66 tally. The chip behemoth’s results continued to be fueled by data-centric businesses, which now ac- count for nearly one-half of the top line. The Data Center group posted gains across all markets and experienced in- creased adoption of Xeon Scalable proces- sors, including for artificial intelligence. We believe the good times will contin- ue at least through 2019. Given a strong domestic economy, we look for healthy gains across most product groups over the 12 to 18 months ahead. Specifically, the Non-Volatile Memory Solutions division ought to continue to register double-digit top-line advances thanks to healthy storage demand. Furthermore, the Pro- grammable Solutions group should reap the benefits of several recent design wins. Finally, the Client Computing segment is poised to benefit from a lineup of high- performance mobile processors. Intel has done a fine job of diversify- ing beyond its personal computer business. It appears that Intel’s focus on the data-centric businesses is bearing fruit. Big data is very important in today’s world, and having the ability to analyze and use that data could add meaningfully to profits. Another arena to keep an eye on is driverless cars. Intel entered the fray with the relatively recent acquisition of Mobileye. Though the mass production of autonomous cars may be several years away, Intel appears to have a strong entryway into this market. Overall, the company’s stellar balance sheet provides for myriad options moving forward. These shares are ranked 1 (Highest) for year-ahead price performance. Despite their recent strong performance, INTC shares offer solid risk-adjusted total return potential over the pull to 2021- 2023. Intel also pays a healthy dividend, which is well covered by earnings from op- erations. Of note, Brian Krzanich resigned as CEO due to a violation of Intel’s non- fraternization policy. CFO Robert Swan was named Interim CEO immediately after the resignation. We expect no long term ill effects. Alan G. House June 29, 2018 LEGENDS 11.0 x ″ Cash Flow″ p sh. . . . Relative Price Strength Options: Yes Shaded area indicates recession © 2018 Value Line, Inc. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind